Just earlier this month Hong Kong's Secretary for Security, Mrs Regina Ip, spoke of the jurisdiction's firm commitment to international co-operation in tackling international crimes, money laundering activities and drug trafficking at the meeting of the 13th round of the FATF in Paris.

Mrs Ip said: 'Hong Kong is a key international financial centre and one of the world's freest economies. We in Hong Kong realize that our strengths lie in the integrity of our financial systems. Therefore, we are fully committed to and always vigilant in countering money laundering.'

Between the two authorities a total of 66 reports of suspected laundering was received between January and August this year, compared with 43 in 2000, 14 in 1999, and 24 in 1998.

The figure excludes dubious transactions reported by banking institutions but a police spokewoman explained to the local media that this does 'not necessarily mean money-laundering is getting worse at non-bank finanacial institutions in the SAR, it may simply mean people and institutions are more aware of their legal obligations and willing to come forward.'

Within Hong Kong's banking sector 3,975 cases were reported this year up until August. In 2000 the figure was 5,995 and 5,757 in 1999.